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Race Together
Starbuck’s India
alliance
The Presenter’s
Asif Mahmud Onik
Umma Tamanna
Sharmin Haque
Ummay Sanjida
Bithi Akhter
Biswajit Saha
ID: 141051002
ID: 141051074
ID: 133051010
ID: 133051013
ID: 133051065
ID: 133051077
Most respect coffee retailer in the world.
International expansion is key to success.
Privileged to connect with millions of customers every day.
Partner with Tata corporation in India.
Choice Starbuck’s Corporation
Why expand into India
Larger economy.
Coffee culture.
Other American corporation success.
Starbucks Journey in Indian Market
Coffee consumption growing drastically.
Tweaked its menu to suit the Indian conditions. Starbucks stores offer regular & decaffeinated coffee
beverages, teas, pastries, muffins & other break fast food.
Starbucks Challenge in New Market
When Starbucks Corporation decides to engage in Indian financing activities, they also take on additional risk (as well as opportunities).
Foreign Exchange Risk Political Risk
Business Risk in India
Currency’s exchange risk. Financial risk Government power.
Foreign Exchange Risk
Political Risk
Democracy country. Policy change. Trade barriers
Business Operation Challenged in India
Emerging markets experience. Emerging markets are also riskier than developed markets. Economies may be more prone to excessive booms or busts.
Laws across borders. Government actions impacted Starbucks as a challenge with
exchange control and other foreign regulations .
Cultural Factor. Tea as the national drink.
Socioeconomically Factors
Existing Competitors.
Indian local & large coffee brand Café Coffee Day.
Pricing decisions.
Lower price in Indian market.
Economic Factors.
Bargaining Power of Buyers.
Bargaining Power of Suppliers.
Operation Challenge
Starbucks Corporation Mode of Entry
Foreign Direct Investment.
Licenses.
Joint Venture.
Mode of Entry in India
Joint Venturing with
Tata Corporation.
Mode of Entry
Strong brand name recognition.
Readily available resource.
Massive distribution network
Tata has………..
Finance in India
Tata 50 % < > Starbucks 50%
The two partners will invest a total of $80million initially.
Operation is separate from both companies and often the same …role is shared by both managerial teams.
Long term plan in India
Starbucks announced its objective to open more 20 outlets in
India by the end of 2015.
Expansion & creating the right training facilities.
Delivering an elevated coffeehouse experience to our
customers in India.
Try to serve a variety of small dishes ranging in price to
customer.
Starbucks Global Strategy
Differentiation.
Increasing profitability and profit Production.
Market R & D (centralized or few favorable locations).
Try to ensure their quality of product and service run in a same way everywhere.
Economies of scale is globally standardized.
Compete Based on Price:– Low costs– High volume– Low margins
Starbucks also follows the “Cost Leadership” strategy.
WHATS STARBUCKS Drinkers TALK ABOUT
Conclusion
Starbucks’ still has competitive western advantage when compared to these other competitors.
Tata Starbucks connects with its consumers through its social, Internet, mobile, loyalty and cards programs.
Starbucks Coffee president (China & Asia Pacific) John Culver said "We are committed to India for the long-term and we want to grow aggressively
here. India will be our top five markets around the world over a long-term"
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